TigerLogic Corporation Announces Second Quarter Fiscal Year 2010 Results

IRVINE, Calif., Nov. 12  /PRNewswire-FirstCall/ -- TigerLogic Corporation (NASDAQ:TIGR) today announced financial results for the second quarter ended September 30, 2009. Net revenue for the second quarter was $3.4 million as compared to $4.2 million for the same period in the prior fiscal year. Net loss for the second quarter ended September 30, 2009 was $0.6 million as compared to a net loss of $1.5 million for the same period in the prior fiscal year. Loss per share for the quarter ended September 30, 2009 was $0.02 as compared to a loss per share of $0.06 in the same period in the prior fiscal year. Cash balance was $11.4 million at September 30, 2009 as compared to $12.2 million at September 30, 2008.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter ended September 30, 2009 was negative $0.1 million or negative 3% of net revenue, as compared to negative $0.5 million or negative 11% of net revenue for the same period in the prior fiscal year. The improvement in EBITDA for the three month period ended September 30, 2009, compared to the same period in the prior year, was a result of lower operating expenses due to less headcount and lower legal and marketing expense, partially offset by lower revenues. The Company computes EBITDA, as reflected in the table appearing at the end of this press release, by adding depreciation, amortization, non-cash stock-based compensation expense, interest (income) expense, other (income) expense, and income tax provision (benefit) to its GAAP reported net income (loss).

About TigerLogic Corporation

TigerLogic Corporation (NASDAQ:TIGR), has been providing reliable data management and rapid application deployment solutions for ISVs and developers of database applications for more than three decades.  TigerLogic's product offerings include: 1) TigerLogic® yolink, an internet browser-based application that enhances the search experience of any popular search engine or Web page; 2) TigerLogic® XML Data Management Server (XDMS) provides flexible, scalable and extensible XML data storage as well as query and retrieval of critical business data across a variety of structured and unstructured information sources; 3) Pick® Universal Data Model (Pick UDM) based database management systems and components, including D3®, mvEnterprise® and mvBase® that are the choice of more than a thousand application developers worldwide; and 4) Omnis Studio®, a cross-platform, object-oriented RAD tool for developing sophisticated thick-client, Web-client or ultra thin-client database applications.  TigerLogic's installed customer base includes more than 500,000 active users representing more than 20,000 customer sites worldwide, with a significant base of diverse vertical applications.  With employees and contractors worldwide, TigerLogic offers 24x7 customer support services and maintains an international presence. More information about TigerLogic and its products can be found at http://www.tigerlogic.com/.  Product details about yolink can be found at http://www.yolink.com/.

Except for the historical statements contained herein, the foregoing release may contain forward-looking information.  Any forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the success of the Company's research and development efforts to develop new products and to penetrate new markets, the market acceptance of the Company's new products and updates, technical risks related to such products and updates, the Company's ability to maintain market share for its existing products, the availability of adequate liquidity and other risks and uncertainties.  Please consult the various reports and documents filed by the Company with the U.S. Securities and Exchange Commission, including but not limited to the Company's most recent reports on Form 10-K and Form 10-Q for factors potentially affecting the Company's future financial results. All forward-looking statements are made as of the date hereof and the Company disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The Company's results for the quarter ended September 30, 2009 are not necessarily indicative of the Company's operating results for any future periods.

TigerLogic, yolink, Raining Data, Pick, mvDesigner, D3, mvEnterprise, mvBase, Omnis, and Omnis Studio are trademarks of TigerLogic Corporation.  All other trademarks and registered trademarks are properties of their respective owners.

                    TIGERLOGIC CORPORATION AND SUBSIDIARIES
                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

                                               September 30,  March 31,
                                                   2009        2009
                                                   ----        ----
                                                   (In thousands)
                      ASSETS

    Current assets
       Cash                                      $11,439     $12,282
       Trade accounts receivable, less
        allowance for doubtful
        accounts of $47 and $271,
        respectively                                 867         881
       Other current assets                          442         389
                                                     ---         ---
              Total current assets                12,748      13,552

    Property, furniture and equipment-net            821         849
    Goodwill                                      26,388      26,388
    Deferred tax assets                              428         383
    Other assets                                     173         161
                                                     ---         ---
              Total assets                       $40,558     $41,333
                                                 =======     =======


       LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities
       Accounts payable                             $219        $161
       Accrued liabilities                         1,545       2,090
       Deferred revenue                            4,204       4,531
                                                   -----       -----
              Total current liabilities            5,968       6,782


    Commitments and contingencies

    Stockholders' equity
       Preferred stock                                 -           -
       Common stock                                2,692       2,673
       Additional paid-in-capital                130,392     129,684
       Accumulated other comprehensive income      2,433       2,861
       Accumulated deficit                      (100,927)   (100,667)
                                                 -------     -------
            Total stockholders' equity            34,590      34,551
                                                  ------      ------
            Total liabilities and
             stockholders' equity                $40,558     $41,333
                                                 =======     =======



                  TIGERLOGIC CORPORATION AND SUBSIDIARIES
         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)

                         Three Months Ended  Six Months Ended
                            September 30,     September 30,
                            -------------     -------------
                            2009     2008     2009     2008
                            ----     ----     ----     ----
   Net revenues
     Licenses               $912   $1,331   $2,004   $2,967
     Services              2,450    2,819    4,945    5,738
                           -----    -----    -----    -----
     Total net revenues    3,362    4,150    6,949    8,705

    Operating expenses
      Cost of license
       revenues                3        8       24       12
      Cost of service
       revenues              402      436      800      884
      Selling and
       marketing             938    1,497    1,864    3,324
      Research and
       development         1,539    1,943    3,117    4,175
      General and
       administrative        903    1,244    2,059    2,787
                             ---    -----    -----    -----
      Total operating
       expenses            3,785    5,128    7,864   11,182
                           -----    -----    -----   ------

   Operating loss           (423)    (978)    (915)  (2,477)

   Other income (expense)
      Interest
       income-net              1       55        -      106
      Other income
       (expense)-net        (120)    (604)     673     (610)
                            ----     ----      ---     ----
      Total other income
       (expense)            (119)    (549)     673     (504)
                            ----     ----      ---     ----

    Loss before income
     taxes                  (542)  (1,527)    (242)  (2,981)

    Income tax provision
     (benefit)                15      (32)      18      (21)
                             ---      ---      ---      ---

    Net loss               $(557) $(1,495)   $(260) $(2,960)
                           =====  =======    =====  =======

    Basic and diluted
     net loss per share   $(0.02)  $(0.06)  $(0.01)  $(0.11)
                          ======   ======   ======   ======

    Shares used in
     computing basic
     and diluted net
     loss per share       26,862   26,536   26,803   26,494



                    TIGERLOGIC CORPORATION AND SUBSIDIARIES
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                           Six Months Ended September 30,
                                           ------------------------------
                                                  2009            2008
                                                  ----            ----
                                                    (In thousands)

   Cash flows from operating activities:
   Net loss                                      $(260)        $(2,960)
       Adjustments to reconcile net loss to net
        cash used in operating activities:
         Depreciation and amortization of
          long-lived assets                        185             217
         Provision for bad debt                     12             (34)
         Stock-based compensation expense          453             847
         Income tax provision (benefit)             18             (21)
         Foreign currency exchange (gain) loss    (551)            613
         Change in assets and liabilities:
            Trade accounts receivable               62             416
            Other current and non-current assets   (44)            (97)
            Accounts payable                        51             (97)
            Accrued liabilities                   (620)           (379)
            Deferred revenue                      (443)           (298)
                                                   ---             ---
       Net cash used in operating activities    (1,137)         (1,793)
                                                 -----           -----

       Cash flows used in investing
        activities-purchase of
        property, furniture and equipment         (106)           (531)
                                                   ---             ---

       Cash flows from financing
        activities:
         Proceeds from exercise of stock
          options                                  235             555
         Proceeds from issuance of common
          stock                                     38              86
                                                   ---             ---
         Net cash provided by financing
          activities                               273             641

       Effect of exchange rate changes on cash     127            (149)
                                                   ---             ---

       Net decrease in cash and cash
        equivalents                               (843)         (1,832)

       Cash and cash equivalents at
        beginning of period                     12,282          14,065
                                                ------          ------
       Cash and cash equivalents at end of
        period                                 $11,439         $12,233
                                               =======         =======

      Non-cash financing activities:
         Conversion of debt to common stock        $-            $977

  Non-GAAP Financial Information


EBITDA should not be construed as a substitute for net income (loss) or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA excludes components that are significant in understanding and assessing our results of operations and cash flows. EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies.

However, EBITDA is used by management to evaluate, assess and benchmark the Company's operational results and the Company believes that EBITDA is relevant and useful information, which is often reported and widely used by analysts, investors and other interested parties in our industry. Accordingly, the Company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the Company's ability to meet future debt service, capital expenditure and working capital requirements.

The Company's EBITDA financial information is comparable to net loss. The table below reconciles EBITDA to the Company's GAAP disclosure of net loss:

                    TIGERLOGIC CORPORATION AND SUBSIDIARIES
                     RECONCILIATION OF EBITDA TO NET LOSS
                               (In thousands)

                                   For the Three Months  For the Six Months
                                    Ended September 30,  Ended September 30,
                                    -------------------  -------------------
                                        2009   2008      2009     2008
                                        ----   ----      ----     ----

   Reported net loss                  $(557) $(1,495)   $(260) $(2,960)
   Depreciation and amortization         90      111      185      217
   Stock-based compensation             240      397      453      847
   Interest expense-net                  (1)     (55)       -     (106)
   Other (income) expense-net           120      604     (673)     610
   Income tax provision (benefit)        15      (32)      18      (21)
                                        ---      ---      ---      ---
  EBITDA                               $(93)   $(470)   $(277) $(1,413)
                                       ====    =====    =====  =======



Our EBITDA financial information can also be reconciled to net cash used in operating activities as follows:

                    TIGERLOGIC CORPORATION AND SUBSIDIARIES
      RECONCILIATION OF EBITDA TO NET CASH USED IN OPERATING ACTIVITIES
                               (In thousands)

                                  For the Six Months Ended September 30,
                                  --------------------------------------
                                            2009        2008
                                            ----        ----

   Net cash used in operating activities  $(1,137)    $(1,793)
   Interest expense-net                         -        (106)
   Other expense (income)-net                (673)        610
   Change in trade accounts receivable        (62)       (416)
   Change in other current and
    non-current assets                         44          97
   Change in accounts payable                 (51)         97
   Change in accrued liabilities              620         379
   Change in deferred revenue                 443         298
   Foreign currency exchange gain (loss)      551        (613)
   Provision for bad debt                     (12)         34
                                              ---         ---
   EBITDA                                   $(277)    $(1,413)
                                            =====     =======


DATASOURCE: TigerLogic Corporation



CONTACT:  Thomas Lim, Chief Financial Officer of TigerLogic Corporation,

[phone], fax, [phone], 



Web Site:  http://www.tigerlogic.com/ 

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